Entering the frozen food sector, Kemin Foods acquires 100% equity of Qingdao Yashi Jia.

Source: Shanghai Securities News · China Securities Network

China Securities Network, Shanghai Securities News (Reporter Xia Zihang) On March 28, Keming Foods issued an announcement stating that on March 27, the company’s controlling subsidiary, Yanjin Keming Wugu Daochang Food Co., Ltd. (hereinafter referred to as “Wugu Daochang”), together with Tai Bao Meike Co., Ltd. (hereinafter referred to as “Tai Bao Meike”) and Asia Foods, signed a Share Transfer Agreement to acquire 100% of the equity interest in Qingdao Ya Shi Jia Food Co., Ltd. (hereinafter referred to as “Qingdao Ya Shi Jia”) for approximately RMB 144.89 million in cash.

After completion of this transaction, Qingdao Ya Shi Jia will become a company’s controlling-level subsidiary. Keming Foods said this move is intended to further improve the tiered product matrix to meet diverse market demands, effectively fill the gap in the frozen food sector, strengthen differentiated competitiveness, accelerate resource integration and capacity optimization, and continuously enhance the company’s overall competitiveness.

According to business registration information, Qingdao Ya Shi Jia was established in 1994, with a registered capital of USD 5.73 million. Tai Bao Meike holds 81.15% of the shares, and Asia Foods holds 18.85% of the shares.

As introduced, Qingdao Ya Shi Jia’s main business is the production and sales of frozen noodles, potato products, and other prepared foods. Its core products include frozen udon noodles, ramen, Italian pasta, and various potato pancakes, among others. Financial data shows that in fiscal year 2025, Qingdao Ya Shi Jia generated operating revenue of approximately RMB 196 million, and net profit attributable to owners of the parent company of approximately RMB 14.2613 million. At the end of 2025, owners’ equity attributable to owners of the parent company for Qingdao Ya Shi Jia was approximately RMB 176 million.

In its announcement, Keming Foods said that in order to maintain the stability of employees at Qingdao Ya Shi Jia, the two parties agreed that within 30 working days after the equity delivery date, Qingdao Ya Shi Jia will additionally pay employee-related expenses of no more than RMB 70 million. These expenses have been factored into the transaction pricing.

Keming Foods said the acquisition is intended to effectively deepen the company’s large-foods strategy and achieve multi-faceted synergies through a “room-temperature + frozen” dual-engine drive. Specifically, in terms of category complementarity, Keming Foods mainly focuses on room-temperature kitchen foods such as dried noodles and instant noodles, while the target company is deeply engaged in frozen foods. This transaction can effectively fill the gap in the company’s frozen food sector; the two sides’ categories are strongly complementary, helping the company build a more comprehensive product matrix. In terms of procurement synergy, based on the high overlap in raw materials between both parties in the pasta-food segment, by integrating procurement needs, centralized procurement of raw materials can be achieved, enhancing bargaining power with upstream suppliers and further optimizing overall procurement costs.

Keming Foods also said it will rely on the company’s existing Jiaxing production base to handle the processing of high-end brands under the target company, significantly improving capacity utilization, and achieving cost optimization through economies of scale. At the same time, the company will leverage its deep accumulation in the retail end to help the target company’s products quickly penetrate the retail market. It will also use the target company’s improved resources in high-end foodservice and the corporate segment to open customized introduction channels for high-margin products such as aseptic rice and premium boiled noodles.

Keming Foods further said it will take advantage of the target company’s stable channels and mature distribution system in international markets such as Southeast Asia and Europe and the United States to provide strong platform support for the export of the company’s room-temperature core categories.

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